Corporate social responsibility is a form of corporate self-regulation that is integrated into the business model. It is a voluntary activity carried out by companies to operate in an economic, social and environmentally sustainable way. It aims to take responsibility for the company’s business, and to encourage positive impact through its activities in the environment, consumers, employees, communities, stakeholders and all other members of the public sphere who can also be considered as stakeholders. Many companies are also establishing a social responsibility or sustainable development department.
Currently, CSR is essentially present in all countries of the world, but views on it vary from country to country, depending on the performance of governance and the economic reform strategies applied.
Community pressures and demands
In some countries the focus is on searching for a business case, while in others CSR arises as a result of or in response to pressures and demands from society. In other countries, however, the debate is motivated and rooted in a moral argument.
Certainly, the gradual change in the role of governance has highlighted the need to elevate corporate social responsibility from work for a special, voluntary and charitable purpose to deliberate and systematic development work that leaves sustainable impacts and supports the socio-economic development plans of countries. Education, youth empowerment and employment projects supported by private companies have grown from simple philanthropy and donations to sustainable development projects.
Also, the implementation of social responsibility programs is not an area of ratification for society, without society, these companies would not exist, so companies and private sector institutions should not follow the idea of implementing social responsibility programs to emergency crises, and consider the concept of social responsibility as a general culture related to its survival and continuity.
Acting ethically
Corporate social responsibility is the commitment of these companies to act ethically and contribute to economic development and improve the lives of workers and their families, and it also includes working to achieve what is good for society and to evaluate the performance of companies The Egyptian Corporate Social Responsibility Index prepared by the Center of Directors at the Ministry of Investment, which is based on four main axes when evaluating companies listed on the stock exchange, namely: – Attention to human rights, the environment, the rights of workers, and avoiding suspicious transactions, social responsibility begins From within the company (internal environment) and then heading to the outside (external environment), it is the responsibility of every company operating in Egypt, regardless of its size or field of work.
CSR has a significant impact on the following points:
- Employment: It is one of the most important sources of economic development. Companies hire individuals directly by hiring permanent or contract employees.
- Provision of resources and procurement: Providing resources from companies located in local communities may thus stimulate the economic development of the local community.
- Financial investment: Companies investing money on a short or long-term basis brings many benefits to local communities.
4. Philanthropy and community investment: This generally includes channeling cash and resources into activities that stimulate job creation and income generation in the community, such as training for employment preparation, affordable housing, developing and expanding small businesses, economic recovery, investing in youth education and training or promoting the health conditions of youth in the community. Companies undertake these activities by donating to community development organizations, in partnership with non-profit agencies and initiating economic recovery programs